The National Economic Council has recommended that President Bola Tinubu withdraw the pending tax reform bills from the National Assembly to allow for broader consultations and consensus among stakeholders across Nigeria.
According to The PUNCH, this decision was announced by Oyo State Governor, Seyi Makinde, following the council’s 144th meeting held at the State House in Abuja on Thursday.
Governor Makinde explained that NEC members believe further discussion is necessary to align perspectives on the proposed reforms, which aim to streamline tax administration in Nigeria.
“NEC noted the need for sufficient alignment on the proposed reforms and recommended the withdrawal of the tax reform bills,” he stated, adding that “we saw the gap and decided that there is a need for wider consultation.”
The tax reform bills, introduced by the Federal Executive Council and backed by President Tinubu, seek to optimize Nigeria’s tax structure and remove inefficiencies.
According to federal authorities, these bills represent a comprehensive review of current tax laws and aim to improve the effectiveness of tax collection across the country.
However, NEC’s recommendation comes in the wake of growing opposition to the reforms. Just days earlier, the Northern Governors’ Forum expressed concerns about certain provisions, notably a new derivation-based model for Value-Added Tax distribution.
In a communiqué issued by the forum’s chairman, Gombe State Governor Muhammed Yahaya, northern governors argued that the proposed model does not support the interests of their region and other sub-national entities.
As Governor Makinde put it, “This decision was made with the country’s best interest in mind,” underscoring the importance of reaching a consensus before advancing any major tax changes.
The National Assembly is currently reviewing four executive bills tied to these reforms, which have sparked nationwide discussions on the future of Nigeria’s tax landscape.
